Monday, 6 October 2014

Collective bargaining

Collective bargaining

Is a processing in which workers and employers make claims upon each other and resolve them through a process of negotiation leading to collective agreements that are mutually beneficial.  In the process different interests are reconciled. For workers joining together allows them to have a more balanced relationship with their employer ensuring better conditions of employment. For employers, free association enables competition of interests is constructive, fair and based on a collaborative effort to raise productivity.
Part E of Chapter III of the LRA makes provision for the establishment of statutory councils, sectoralbodies that may be established in different enterprise sectors in respect of which no bargaining council is registered. A framework that the LRA creates a platform for s23(5) of the Constitution  a right to engage in collective bargaining and avoid industrial conflict.
Parties in collective bargaining: trade unions, employers and employer’s  organisations
Chapter VI of the LRA regulates trade unions  and employer organisations.  A ‘trade union’ is defined in s213 of the LRA as an association of employees whose principal purpose is to regulate relations between employees and employers. An employers’ organisation is defined in the same section as any number of employers associated together for the purpose of regulating relations between employers and employees/or trade unions.
Registration for registration of trade unions or employers’ organisations
The LRA establishes a simple procedure for registration of trade unions and employers’ organisation the process is directed primarily to ensure democratic practices, financial accountability, independence and non discrimination within employers organisation and trade unions. Any trade union or employers’ organisation may approach the Registrar at the Department of Labour with the following  requirements :1. A namefor  it(not resembling a name of another trade union), 2.valid constitution as per s95(5) and (6) 3. Its address in the republic 4. It must be independent(not under direct  control of the employer or employer’s organisation) .  If successful in the registration process then a registered trade union or employers’ organisation becomes entitled to:  Conclude collective agreements, participate in the establishment of a bargaining statutory and council, workplace forum , represent members in dispute resolution proceedings and qualify for statutory organisational rights.

1.       Bargaining Councils

  1. One of the purpose of the LRA is to promote collective bargaining, primary vehicle to achieve this is the bargaining councils at a sector level. They are voluntary bodies, established by the registered trade unions and registered employers’ organisations that have achieved a threshold of representivity in a defined sector. Whose main function is to serve a forum for the negotiation of terms and conditions of employment of the members of the union party to the council, sometimes  for all employees engaged in the sector. The state be can a party to any bargaining council if it is an employer. Establishing the council is done the same way as applying to be a registered trade union and the employers ‘ organisation.


Powers  and functions of the bargaining council

Conclude and enforce collective agreements:prevent and resolve disputes;establish and administer a fund to be used for resolving disputes; promote and establish training and education schemes;establish and administer pension,providentfunds,medicalaids,sickpay,holiday,unemployment and training schemes or funds or any similar schemes or funds for the benefit of one or more of the parties to the bargaining council or their members and develop proposal for submission to NEDLAC or any other appropriate forum on policy and legislation that may affect the sector and arear.
Bargaining councils in sectors of the public service
The Public Service Co-ordinating  Bargaining Council may designate a sector of the public service for the establishment of a separate bargaining council which will have exclusive jurisdiction in respect of matters that are specific  to that sector and in respect of which the state as the employer has the requisite authority to conclude collective agreements and to resolve labour disputes.
Statutory councils
They are the creatures of compromise, the idea behind statutory councils is that they might be established in sectors where union representativity is relatively low and where there is no bargaining councils existing. They have very limited powers and functions.

Collective agreements



They are defined as written agreements concerning terms and conditions of employment or other matters of mutual interestconcluded between  registered trade unions and one or more employers or one or more employers’ organisation. With regards to the scope covered in collective agreements, it includes matters of mutual interests only issues of employer-employee relationship.eg wages and health and safety at work but also issues that are generally of significance or of interest to those parties.
The binding effect of the collective agreements
They are regulated by common law contractual rules.  Binding to: the parties of the agreement ; each party to the collective agreement; and the members of a registered trade union and the employers who are members of a registered employers’ organisation that are party to the collective agreement  if the collective agreement regulates :terms and conditions of employment; or the conduct of the employees in relation to their employers; employees who are not members of the registered  trade union or unions that are party to the collective agreement if: the employees are identified in the agreement; the agreement expressly binds the employees; and the trade union or unions that are party to the collective agreement have as their members  the majority of employees employed  by the employer in the work place.
The collective agreement varies any contract of employment between an employer and an employee who are both are both bound by the collective agreement. This variation takes place by operation of law. This provision should be read with section 199 of the LRA. The section provides that a contract of employment may not permit an employee to be paid less than the remuneration prescribed by that agreement or be granted a benefit that is less favourable than that prescribed by the  collective agreement.  A contract of employment may not waive the application of any provision of a collective agreement. Any provision in a contract of employment in breach of these provisions is invalid.


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